Qualities of Top Financial Advisors and Planners
Updated on Mar 06 2019
Market research company J.D. Power recently conducted a study ranking the best financial advisor firms of 2018, giving the greatest weight on its 1,000 point scale to the clients’ view of their financial advisors. Here are the common traits found in the top financial advisors.
This list of 5 qualities shared by the top financial advisors can help you as you find the best financial advisor for your financial planning.
5 Qualities Shared by the Best Financial Advisors
What makes a great financial advisor? What qualities do the top financial advisors share? Recent research shows that these qualities are the top traits for financial advisors who not only help you manage your finances successfully, but also give you peace of mind.
1. Their reputation is trustworthy.
It may go without saying, but top financial advisors will have a good reputation. Before working with a financial planner, consider what you have heard about working with him or her. Ask trusted friends, family members, and co-workers about their personal experiences. What is their record of success? Listening to what trusted friends and family members have to say now can save you time and money down the road.
2. Their approach is proactive.
The best financial advisors are endlessly curious. They are passionate about their job and passionate about helping their clients. They will take the time to piece together seemingly small and unrelated details, forming a holistic and comprehensive approach to your finances. Top financial advisors enjoy the process and think ahead, keeping communication open and making complex financial principles easy to understand.
3. They have accreditation and experience.
A financial advisor who is good at his or her job will be committed to keeping their accreditations up to date. He or she will follow the changing standards and laws, investing in continuing educational opportunities. Be sure to ask for the accreditation and experience of any financial advisor you are considering partnering with for your financial planning. Top financial advisors will readily disclose their experience and certification. One common and trustworthy accreditation is the CFP®. The CFP® certification identifies to the public that those individuals who have met rigorous professional standards and have agreed to adhere to the principles of integrity, objectivity, competence, fairness, confidentiality, professionalism and diligence when dealing with clients. Other common accreditations include Certified Financial Planner (CFP), Certified Fund Specialist (CFS), Chartered Financial Analyst (CFA), and Chartered Life Underwriter (CLU).
4. They are confident in their abilities and strategy.
The best financial advisors will invoke a sense of confidence in their clients. They do not panic when the market changes unexpectedly. They have a clear strategy and move forward wisely and proactively. A top financial planner will be exceptional at networking, having access to experts across the industry and bringing a greater sense of confidence to his or her work. You should feel good about creating a relationship with your financial advisor as you entrust your financial future to them.
5. They are committed to putting your interests first.
This may be the most important quality of a top financial advisor. The best financial advisors and the best financial advisor firms will also be fiduciaries. A fiduciary financial advisor is legally and ethically obligated to put your interests first, ahead of their own - even in a conflict of interest. Your potential financial advisor should be able to tell you directly if he or she is a fiduciary.
Find the Right Financial Advisor for You
What key qualities are important to you as you look for a financial advisor? No matter how you choose one, do your due-diligence to ensure the person you have found is the right fit for your unique situation. Ask the advisor about their accreditation and if they are a fiduciary. Ask others about their reputation and think about how you feel giving them so much access to your personal financial information.
Connect with a local financial advisor to start the process of finding the right advisor for you.
Find an Advisor Near You
Advisors by City
Find advisors located in the cities nearest you.
Need a financial advisor?
100% free consumer service